Adani-Hindenburg: Everything from institutions to short positions to shell companies

BUSINESS: Adani-Hindenburg case- US-based short seller Hindenburg Research in a report on August 10 Was accused that stock market regulator Securities and Exchange Board of India Chairperson Madhabi Puri Buch and her husband have stakes in offshore entities linked to the Adani Group. In a series of posts on X late on Sunday, Hindenburg Research also asked the Sebi chief to disclose the client list of all individuals or firms that consulted him on his offshore investments. In the report, Hindenburg Research had used several market terms to describe its claims. Here is a list of such terms and their meanings. Offshore entities The report mentions offshore entities. According to Hindenburg Research, whistleblower documents revealed that the Sebi chairman has stakes in offshore entities of the Adani Group that allegedly siphoned off money. The term offshore means a location outside a company’s home country. Financial and banking regulations in such locations are typically different from those in the home country. Offshore locations are typically island nations where firms set up corporations, investments, and deposits. Companies and high-net-worth individuals may prefer offshore locations for tax avoidance, relaxed regulations, or asset protection. Offshore companies are legitimate but they can be used for illegal purposes.